Home Affordable Modification Program - by Tom Brewer

Home Affordable Modification Program

Another well known effort to get America’s housing market back on track is the Home Affordable Modification Program. This program was basically designed to help “stabilize our housing market and help up to 7 to 9 million Americans reduce their monthly mortgage payments to more affordable levels”.

Under this program, homeowners that may be experiencing issues making the mortgage payments, if they meet certain minimum criteria, may qualify for a loan modification. This program makes it possible for homeowners to modify their current loans. This is especially helpful when they have missed their monthly mortgage payments or are likely to do so soon.

The eligibility requirements for the Home Affordable Modification Program are not too difficult. Homeowners in mortgage trouble can go to the Home Affordable Modification Program website and select answers to a series of questions to help determine if they meet the criteria.

Some of the questions asked include Is your home your primary residence, Did you get your current mortgage before January 1, 2009 and Is your payment on your first mortgage (including principal, interest, taxes, insurance and homeowner's association dues, if applicable) more than 31% of your current gross income.
If homeowners can supply the applicable answers to these and other questions, they may qualify for the program. They will also need to provide proof that they can, in fact, pay the modified (lowered) mortgage amount.

The federal government is doing what it can to help ease the far-reaching impact of the housing market crash. Time will tell if the programs being implemented will be effective.